Great Lakes Carbon Income Fund announces 2006 results



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    TORONTO, April 2 /CNW/ -

    To Our Unitholders:

    Great Lakes Carbon Income Fund (the "Fund") (TSX: GLC.UN) today announced
results for the year and quarter ended December 31, 2006. Net sales for the
year and quarter ended December 31, 2006 were US$445.4 million and
US$111.0 million, respectively, compared to US$441.2 million and US$113.1
million, respectively, for the comparable periods in 2005. Net income for year
and quarter ended December 31, 2006 was US$35.4 million and US$8.1 million,
respectively, compared to US$20.0 million and US$7.8 million, respectively,
for the comparable periods in 2005. Adjusted EBITDA (earnings before interest,
taxes, other expenses, depreciation and amortization) for the year and quarter
ended December 31, 2006 was US$82.3 million and US$19.8 million, respectively,
in 2006 compared to US$74.2 million and US$18.4 million, respectively, in
2005. The year-over-year revenue increase is attributable to the impact of
higher overall calcined petroleum coke ("CPC") selling prices resulting from
strong demand for anode grade CPC, partially offset by lower overall product
sales volume in 2006 compared to the prior year period. The improvement in
operating results reflects modest product margin increases and the
contribution from the cogeneration facility at the Fund's Port Arthur, Texas
calcining plant.
    Distributable cash for the year and quarter ended December 31, 2006 was
US$55.6 million and US$12.7 million (or US$1.0864 and US$0.2487 per unit),
respectively, compared to US$53.8 million and US$10.4 (or US$1.0367 and
US$0.2040 per unit), respectively for the comparable 2005 periods. During
2006, the Fund continued the pattern established since its inception of making
monthly cash distributions to its unitholders of CDN$0.1063 per unit, which
were equivalent to US$0.9830 per unit for the year and represented a
distributable cash payout ratio of 90.48%.
    The Fund is a trust established to indirectly hold the securities of GLC.
At December 31, 2006, the Fund held an indirect 73.56% interest in GLC. GLC is
the world's largest producer of both anode and industrial grade CPC. Anode
grade CPC is used in the production of aluminum. Industrial grade CPC is used
in the production of other industrial materials including titanium dioxide.
GLC produces CPC at its facilities located in Port Arthur, Texas; Enid,
Oklahoma; Baton Rouge, Louisiana; and La Plata, Argentina.

    Adjusted EBITDA is not a recognized measure and does not have a
standardized meaning under the Canadian generally accepted accounting
principles. Accordingly, this measure may not be comparable to similar
measures presented by other issuers. Please refer to the Fund's Management's
Discussion and Analysis of Financial Conditions and Results of Operations for
the year ended December 31, 2006 for additional information concerning these
measures and a reconciliation of these measures to net income for the periods
presented.

    Management will hold a conference call on April 5, 2007 at 11:00 AM (EDT)
to review the results for 2006 and other issues of interest to unitholders.
The call-in number is 800-733-7560 or 416-644-3414. A replay of the call will
be available from approximately one hour after the end of the conference call
through April 16, 2007 by dialing 877-289-8525 or 416-640-1917 and using the
access code 21225669 followed by the number sign.

    The unaudited results for the Fund have been filed with the Canadian
securities regulatory authorities and are available on the internet at the
System for Electronic Document Analysis and Retrieval (SEDAR) website
(www.sedar.com).





For further information:

For further information: Ronald J. Statile, Chief Financial Officer,
(212) 370-5770

Organization Profile

GREAT LAKES CARBON INCOME FUND

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